KUALA LUMPUR (Sept 5): Malaysia Aviation Group Bhd (MAG), the parent company of Malaysia Airlines Bhd (MAB), is considering taking full control of Brahim's Food Services Sdn Bhd (BFS). MAB currently holds a 30% stake in BFS, while Brahim's Holdings Bhd (BHB) controls the other 70%.
MAG group managing director Datuk Captain Izham Ismail said the airline group is contemplating buying the 70% stake it doesn’t already own from BHB.
This follows the discontinuation of its long-standing partnership on catering services previously provided by BFS on selected domestic and international routes within the MAB network on Aug 31.
He said this is one of three options MAG has to continue its catering operations going forward.
A joint valuer Deloitte has been appointed by both BHB and MAB to undertake valuations on BFS, which is expected to be completed in two weeks. Pursuant to this, MAG will then decide whether or not to proceed to negotiate with BHB on the stake acquisition in BFS. MAG’s current cash balance stands at RM5 billion.
“Another (option) is to have more varied service providers for our in-flight meals. MAG is open to all suppliers including Malindo Catering and AirAsia's Santan that meet our standards and are able to provide choices to our customers. We can have as many as 20 or 30 suppliers,” he told selected media on Tuesday.
MAG is currently working with eight service providers for its in-flight meals, including its 60%-owned unit MAS Awana Services Sdn Bhd, and Pos Aviation Sdn Bhd.
“The longer term option is to build our own catering facility. There are professionals out there whom MAG will employ to set [this] up.
"We are also open to form joint ventures (JVs) with international caterers, either as technical partners that know how to run the catering business or financial partners who invest. And MAG must have a controlling stake (in the JVs) because customers are our centre of gravity,” said Izham.